Chapter 5: Factors of Production

Vocabulary flashcards covering the four factors of production, their remuneration, and detailed characteristics of natural resources and labour based on the South African economic context.

Factors of production

The four resources (inputs) including natural resources, labour, capital, and entrepreneurship that combine in businesses to manufacture goods and services.

Rent

The type of remuneration or payment received for the use of natural resources.

Salaries and wages

The type of remuneration or payment received for the use of labour.

Interest

The type of remuneration or payment received for the use of capital.

Profit

The type of remuneration or payment received by the entrepreneur.

On the Surface Natural Resources

A category of natural resources that includes soil for agriculture and forestry, and water for fishing and fresh water supply.

Below the Surface Natural Resources

A category of natural resources that consists of minerals and rocks.

Above the Surface Natural Resources

A category of natural resources that includes elements such as rain and climate for energy.

Non-renewable resources

Natural resources that are exploitable by humans but cannot be replaced once extracted, such as minerals or water that cannot be artificially manufactured.

Renewable resources

Natural resources that can be replanted, harvested, or bred once used, such as trees, new crops, or animals.

Skilled Labour

People who have had specialized training to perform roles such as doctors, lawyers, electricians, and teachers.

Semi-skilled Labour

Jobs that are more complex than unskilled labour but typically do not need highly specialized training, such as receptionists, truck drivers, and waiters.

Unskilled Labour

Workers who do not have any specialized skills or training and whose tasks focus primarily on manual labour.

Economically active population

The group of people in South Africa who could become part of the labour force, ranging in age from $15$ to $65$.

Perishable (in context of Labour)

The characteristic meaning that labour man-hours lost due to a worker's absence cannot be stored for use at a later stage.

Trade Unions

Organizations in the South African market place that influence the labour market by looking after worker rights or initiating strikes and wage demands.

Fair employment

Business policies and practices that are inclusive of race, gender, religion, and orientation while ensuring a safe and healthy working environment.

Skills Development Fund

A tax introduced in $2000$ where businesses pay $1\%$ of their payroll toward a fund used to educate and train employees and unemployed individuals in learnerships.